Day Trading Options: Profiting from Price Distortions in Very Brief Time Frames
- By Jeff Augen
- Published Oct 2, 2009 by FT Press.
- Copyright 2010
- Dimensions: 5-3/8 X 8
- Pages: 192
- Edition: 1st
- ISBN-10: 0-13-702903-9
- ISBN-13: 978-0-13-702903-7
- eBook (Adobe DRM)
- ISBN-10: 0-13-705414-9
- ISBN-13: 978-0-13-705414-5
Register your product to gain access to bonus material or receive a coupon.
Product Author Bios
Jeff Augen, currently a private investor and writer, has spent more than a decade building a unique intellectual property portfolio of databases, algorithms, and associated software for technical analysis of derivatives prices. His work, which includes more than a million lines of computer code, is particularly focused on the identification of subtle anomalies and price distortions.
Augen has a 25-year history in information technology. As a cofounding executive of IBM’s Life Sciences Computing business, he defined a growth strategy that resulted in $1.2 billion of new revenue and managed a large portfolio of venture capital investments. From 2002 to 2005, Augen was President and CEO of TurboWorx Inc., a technical computing software company founded by the chairman of the Department of Computer Science at Yale University. His books include Trading Options at Expiration, The Option Trader’s Workbook, and The Volatility Edge in Options Trading.
“As a veteran reader of some 500+ trading and investing books and having interviewed hundreds of authors, I never take the approach that you can believe what you read or hear about how to make money in the market, so I try their theory, system, or ideas. Jeff Augen’s book lays down clear guidelines to his intraday options strategy that I can report were profitable in the style I trade.”
--Vincent M. Rowe, President, Online Trading Academy, Texas
“Augen’s book breaks new ground with an indispensable and unique approach to evaluating option prices in different time frames. It also presents a new charting technique for evaluating very short-term trends lasting just a few minutes–a valuable technique for anyone who follows intraday markets. The statistical analysis and associated discussions around high-frequency trading are especially relevant in the modern financial world, which has come to be dominated by supercomputers and algorithmic trading. No serious stock or option trader should be without this book.”
--Sean Sztern, Alternative Strategies Group, Desjardins Securities, Montreal, Quebec
“Jeff Augen’s work on day trading options pulls the curtain back and reveals insights from the world of very short-term options trading. In doing so, he reveals insights beneficial even for the longer-term option trader. Specifically, Chapter 3 on trading volatility distortions introduces the idea of 3-D implied volatility surfaces. Far from being too advanced, this chapter addresses complex volatility issues in plain English that every option trader can understand. I wholly recommend this book.”
--Steve Lentz, DiscoverOptions
Minimize Your Exposure to Market Risk and Increase Profits by Trading in Very Brief Time Frames
In today’s turbulent markets, traditional trading strategies have failed to provide protection from the rapid and violent changes that have swung the Dow down 330 points one day, up 280 points the next, and down 250 points at the open on the next. Fundamental analysis based on company performance and financial predictions has proven meaningless. Technical traders must now compete with institutional trading programs utilizing supercomputers that analyze and execute trades in millisecond time frames. So, how can a private investor compete in this environment?
In Day Trading Options, expert option trader Jeff Augen shows you how to continue to profit even in these chaotic times. You’ll learn to structure short-term trades that exploit well characterized price distortions and anomalies. You’ll discover a breakthrough technique for utilizing volatility to identify the beginning and end of short-lived trends. And, you’ll gain the knowledge to use this innovative technique to take advantage of financial news and planned events, rather than being at their mercy.
- Abandon outdated trading strategies and conventional “wisdom”
Minimize your exposure to market risk and increase your profits by trading in very brief time frames and structuring positions that are direction neutral
- Understand why your once-reliable technical analysis and charting techniques are failing
Explore new statistical evidence to discern how new advances in institutional program trading affect the private investor
- Discover new models for analyzing volatility in different time frames
Learn to evaluate option prices by comparing overnight, intraday, and traditional measures of volatility
- Learn to identify and exploit short-lived volatility changes
Use a newly defined charting technique to correctly time trades by identifying the beginning and end of short-term trends
54 of 56 people found the following review helpful
Dense and intense material for the (really) experienced trader,
Amazon Verified Purchase(What's this?)
This review is from: Day Trading Options: Profiting from Price Distortions in Very Brief Time Frames (Hardcover)Undeniably, this is the most densest book in a series of books by Augen that includes Trading Options at Expiration: Strategies and Models for Winning the Endgameand The Volatility Edge in Options Trading: New Technical Strategies for Investing in Unstable Markets and a workbook. This book is also perhaps the most targeted one and is unlikely to appeal to a broader audience.
The book in itself is fairly short (written with the gravity similar to academic journals) and has five chapters. The first chapter, though called "basic concepts" really sets the tone for the book and makes it evident that the intended audience is experienced day traders (true to the book title's implication). The... Read more
28 of 31 people found the following review helpful
Two key sections,
This review is from: Day Trading Options: Profiting from Price Distortions in Very Brief Time Frames (Hardcover)I manage a hedge fund that trades equity and index options. Augen's books are required reading for all our traders. The current book is by far the best. The most important sections for us have been the discussion about calculating volatility in different time frames and the detailed trend analysis using minute-by-minute price changes expressed in standard deviations.
Following the approach outlined in this book, we now calculate a stock's overnight, intraday, and close-to-close volatility. Comparing these values allows us to identify stocks that have large overnight risk or stocks whose options are underpriced during the trading session. We use this information exactly the way the book describes along with our own knowledge to structure trades that are statistically advantaged.
The trend analysis using minute-by-minute price spikes calculated in standard deviations is equally valuable. This approach has dramatically improved our day trading capability... Read more
13 of 14 people found the following review helpful
Good but limited,
Amazon Verified Purchase(What's this?)
This review is from: Day Trading Options: Profiting from Price Distortions in Very Brief Time Frames (Kindle Edition)This book does not contain as much math and theory as I expected, so I could understand its contents well. However, it is very short, and really only discusses in detail his method using standard deviations, which is not bad.
Unfortunately, this book lacks more explanation on how to implement the method described(downloadable .xls ?). For the price it is worth it, but keep in mind that it has a limited amount of information that may be helpful.
› See all 18 customer reviews...
Table of Contents
Chapter 1 Basic Concepts 1
Chapter 2 New Directions in Automated Trading 35
Chapter 3 Trading Volatility Distortions 81
Chapter 4 Working with Intraday Price Spike Charts 131
Chapter 5 Special Events 157
Download the sample pages (includes Chapter 1 and Index)
This book includes free shipping!
This book includes free shipping!
eBook (Adobe DRM)
This eBook requires the free Adobe® Digital Editions software.
Before downloading this DRM-encrypted PDF, be sure to:
- Install the free Adobe Digital Editions software on your machine. Adobe Digital Editions only works on Macintosh and Windows, and requires the Adobe Flash Player. Please see the official system requirements.
- Authorize your copy of Adobe Digital Editions using your Adobe ID. If you don't already have an Adobe ID, you can create one here.
Get access to thousands of books and training videos about technology, professional development and digital media from more than 40 leading publishers, including Addison-Wesley, Prentice Hall, Cisco Press, IBM Press, O'Reilly Media, Wrox, Apress, and many more. If you continue your subscription after your 30-day trial, you can receive 30% off a monthly subscription to the Safari Library for up to 12 months. That's a total savings of $199.